Donald Trump complained China hasn’t boosted purchases of U.S. farm products, a promise he said he secured from Xi Jinping at the G-20 summit in June. Beijing has never confirmed the pledge, and neither side has documented the discussion. Earlier, China said trade talks will resume “on a basis of equality and mutual respect,” and that its core concerns must be addressed. Meanwhile, a top U.S. general said China will pose a threat for decades.
Rally at the Close
Asian equity futures are mixed after U.S. stocks rallied late to close at a record high. Treasuries retreated after the latest American inflation reading came in hotter than anticipated. The S&P briefly crossed above 3,000, while the Dow Jones surpassed 27,000. The dollar fell for a second day, while oil and gold retreated.
Overseas investors may struggle to circumvent India’s plan to tax the very rich as the option proposed by the tax authorities to sidestep the levies isn’t easy to implement. With frightened investors wiping off 2.9 trillion rupees ($42 billion) from the benchmark S&P BSE Sensex since the budget on July 5 through Wednesday, tax officials have suggested that global funds convert themselves from trusts to corporates as a way to avoid paying the higher surcharge.
Trouble for OPEC
The cartel forecast it’s producing about 560,000 barrels a day more than will be needed next year as the surge in U.S. shale threatens to deliver another surplus. Supplies from its rivals will grow by 2.4 million, more than twice as much as global oil demand, which is expected to be around 1.1 million. Futures dropped even as Tropical Storm Barry formed in the Gulf of Mexico and menaced American refineries and offshore crude output.
More investors turned bearish on Japanese stocks, even before companies start reporting quarterly earnings that some analysts say will decline. BlackRock and Singapore’s DBS Group, became the latest institutions to lower their weightings on the country’s shares, citing everything from a stronger yen to concern about the fallout from the U.S.-China trade war.